Gap Case Study

1117 WordsMar 8, 20135 Pages
Gap Inc. is a large retail company owning several brands such as Gap, (including Gap Kids, Gap Baby, Gap Body) Banana Republic, Old Navy Piperlime and Athleta. The company is an American clothing and accessories retailer based in San Francisco, and was founded in 1969 by Donald and Doris Fisher. They strive to sell quality clothing, mostly the basics, for good prices. They are a leading company in the apparel retail market with 3,085 stores. Through the five brands that Gap Inc. owns, they are able to reach several different price points, which each attract a different customer. Gap’s target market age segment includes men and women from 17-30. This includes single teenagers, young adults, and young married couples. They also try to…show more content…
-Fashion trends are changing rapidly and Gap is falling behind -Production costs continue to rise, even overseas -The market for prime retail is competitive, and location of stores directly impacts sales. -Rising prices of cotton due to weather leads to increases costs and retail prices -Designer Patrick Robinson leaves the company (loss of key staff) According to the article, Gap is facing a difficult situation as their head designer, Patrick Robinson, leaves the company. Retail analysts believe that the company needs to be downsized by closing unproductive stores, they need to make management changes, and they need improved products that are consistent with the merchandising strategies. The basic problem is that Gap’s image has declined and people are starting to associate them as “tired, commoditized, driven by price.” Gap needs to be repositioned, and they need someone who understands the customer, that will turn the brand around. Gap’s strategy is to close all stores that are underperforming in order to cut costs. They will also spend more money on advertising and marketing to a younger market and to minorities such as Hispanics, Asians, and African-Americans. By doing so, they hope to acquire greater market share. They will also use new technology that will locate products online and in stores. In my opinion, I think that Gap’s image has definitely started to decline. Today, most customers are just looking

More about Gap Case Study

Open Document